What is the typical operating expense as a percentage of gross rent in logistics?

The typical operating expense as a percentage of gross rent in logistics is generally in the range of 15-25%. This percentage reflects the costs associated with managing and maintaining logistics facilities, including utilities, maintenance, property management fees, insurance, and other related expenses.

In the logistics sector, certain factors like the need for specialized systems to operate effectively can increase these expenses. Elements such as high-tech inventory management systems, vehicle maintenance, security measures, and energy costs for large storage spaces contribute to the total operating expenses.

Choosing a range of 15-25% provides a realistic framework for understanding how financial performance is assessed in logistics real estate. It helps investors and property managers anticipate their operational budgets and potential return on investment, making sound decisions when it comes to property acquisition and management.

While the other ranges suggested are higher and might reflect extreme circumstances or unique property types with additional service requirements, they do not accurately represent the typical operational landscape within the logistics sector, where efficiency is key to profitability.